Economy (9)
E-commerce spending in UAE, Saudi Arabia set to surge this Ramadan
13 Apr 2021 Written by Admin AdminDigital spending is expected to surge further in the UAE and Saudi Arabia this month, with approximately three-quarters (76 percent) of consumers planning to buy more frequently online during Ramadan, according to a new survey.
About 60 percent of people surveyed in the two countries said they expect to buy groceries more often this Ramadan, while 50 percent said they might spend more on food delivery, global payment solution provider Checkout.com said.
The survey polled 1,000 residents in both the UAE and Saudi Arabia from March 23 to 28 this year, to examine the spending intentions of consumers in the two markets during the holy month.
The coronavirus pandemic has spurred online spending worldwide. According to a recent survey by Mastercard, 73 percent of UAE consumers have been shopping more online since the start of the outbreak last year.
“There’s no doubt that the way we live and shop has changed drastically as a result of the pandemic. With constraints imposed on our daily lives due to COVID-19, consumers are adopting new shopping and payment habits at an accelerated pace,” said Girish Nandan, Mastercard country manager for UAE and Oman.
Checkout’s survey
Overall, the majority of consumers in the UAE and Saudi Arabia, approximately 95 percent, said they shop online. Less than a third (26 percent) said they will also be visiting the physical shops less frequently for products and services this month.
Among most online shoppers (67 percent), the most frequently used mode of payment are cards and digital wallets. About one in three (37 percent) said they also anticipate using cash-on-delivery less this Ramadan compared to last year.
“Many traditionally cash-centric countries in the Middle East are now converting to higher rates of digital payments. The pandemic has spurred a payments revolution of sorts, and it is not one that is going away,” said Mohammed Ali Yusuf, regional manager at Checkout.com for the Middle East North Africa and Pakistan (MENAP).
The trend, Yusuf said, provides an opportunity for merchants to “do better by unlocking more value” in every customer’s transaction.
“This is particularly important during a period like Ramadan when competition among merchants is high, and businesses need to provide the online shopping experience that consumers are looking for.”
source: zawya
The digital economy of the Middle East, including online shopping, online education and online healthcare, has seen significant growth during the COVID-19 pandemic, and has become a highlight of regional economic development.
Analysis shows that the digital economy in the Middle East has broad development prospects in the future, as the number of young consumers in the area is huge and the use of internet infrastructure is gaining increasing popularity.
The latest statistics, released by Egypt's Ministry of Supply and Internal Trade in December 2020, showed that the electronic commerce market in Egypt has reached 40 billion Egyptian pounds ($2.54 billion). It is estimated that the annual growth of Egypt's electronic commerce consumption will reach over 30 percent between 2019 and 2022.
Turkey is now establishing software platforms to allow shopping centers to open online pages, offering non-contact shopping services for customers. The initiative is expected to create more than 6,000 jobs in the delivery business.
Noon Academy, an online learning platform started in Saudi Arabia, has recently seen an increase of 3 million in its student numbers, following deals signed with the education departments of countries throughout the Middle East. In June 2020, it received $13 million in a new round of financing.
The Digital Cooperation Organization was set up by Saudi Arabia, Bahrain, Jordan, Kuwait and Pakistan, aiming to promote cooperation in innovation-driven fields and speed up the growth of the digital economy.
The Gulf Information Technology Exhibition took place in the United Arab Emirates in December 2020. It attracted representatives of 1,200 companies from more than 60 countries and regions around the world to carry out discussions on the development of digital technologies spanning artificial intelligence, smart cities and 5G.
The rapid development of digital economy industries and relevant companies has shown proof of the flexibility of digitization schemes when facing new markets born out of crises. It is expected that the digital transformation of the economy will play an important role as countries in the Middle East pursue economic diversification.
Several Middle Eastern countries have increased policy support to facilitate digital transformation during the COVID-19 epidemic, by taking initiatives such as expanding the construction of internet infrastructure and building an excellent business environment for the digital economy.
The Egyptian government has allocated 12.7 billion Egyptian pounds during the 2020 to 2021 fiscal year to support digital transformation, and has launched a "Digital Egypt" project.
Telecom Egypt has announced it is to build the largest international data center in the country in the western part of the capital Cairo. The center is scheduled to be put into operation at the beginning of 2021.
Banks and network operators in Egypt are now promoting "e-wallets" on television and online, and have released discounts to encourage merchants and consumers to use QR codes for payment.
The country will also set up an electronic system to trace cargo and handle cargo tariff issues. The system is expected to begin experimental operation in April 2021.
According to the economic revival project released by the UAE, the government will encourage investment in the digital economy over the long term. Particular attention will be paid to the development of advanced technologies such as 5G and AI, to promote digital transformation and economic revival after the pandemic.
Saudi Arabia's cabinet approved the country's digital economy development plan in December 2020. The plan establishes detailed targets in areas spanning establishing digital platforms, promoting innovation, cultivating talents and opening markets.
Saudi Telecom Company has started first-phase construction of three large-scale data centers in Riyadh, Jeddah and Medina at a cost of 1 billion riyal ($266.67 million) with the aim of helping governments and private organizations achieve digital transformation while offering infrastructure support for the development of the local digital economy. Four more data centers will be built during the second construction phase.
The Algerian government has also launched its digital transformation plan, noting that digital service platforms for the public will be built by linking data from different government departments, in order to increase efficiency in handling affairs.
Oman will spend the next five years looking at online education, taking measures such as digital platform construction, personal training, and the research and development of lessons.
The website of Gulf Business, a business magazine from UAE, pointed out that the pandemic has had a big impact on industries such as tourism, aviation and hotels in Middle Eastern countries, but the digital economy has gained great momentum against this trend, making regional countries realize the urgency and necessity of developing their digital economies.
The website of an Egyptian business newspaper said that China has taken the lead in developing the digital economy around the world, and has gained a lot of advanced experience in areas such as e-payments and digital ecology.
"We are looking forward to carrying out more communication with China on the digital economy and to deepen exchanges and cooperation," said the UAE Ambassador to China, Ali Obaid Al Dhaheri.
Fruitful outcomes have already been achieved in digital economic cooperation between Middle Eastern countries and China.
Huawei has now signed technical protocols with more than 10 telecom operators from countries including Kuwait, UAE, Saudi Arabia and Bahrain to build their 5G networks.
The Saudi Data and Artificial Intelligence Authority has signed agreements with relevant Chinese companies and institutions to conduct cooperation in areas such as smart city construction and the development of AI technologies in Arabic.
Egypt's Ministry of Education teamed up with Net Dragon Websoft Holdings Ltd, a company from China's Fujian province which manages online gaming and mobile internet industries, to launch a suite of online education products, offering support to more than 22 million students and one million teachers all over the country when schools were closed due to the pandemic.
Exhibitions such as the China-UAE Economic and Trade Digital Expo and the China-Middle East & North Africa (Morocco) International Digital Trade Fair have been held in quick succession, using advanced technologies and new models including the internet, online exhibitions and online negotiations to deepen the digital economy cooperation between China and the Middle East.
Media outlets from the Middle East have widely recognized that the cooperation potential between the Middle East and China is huge.
source: wuzhenwic
Data centre giant plans massive expansion to support UAE's digital economy
11 Feb 2021 Written by Admin AdminKhazna, the UAE's largest supplier of commercial wholesale data centre services, to increase capacity five-fold by 2025
Khazna, the UAE’s largest supplier of commercial wholesale data centre services, has announced major expansion plans to support the country's digital ambitions.
The company said it will build multiple new data centres and increase its capacity five-fold over the next four years to provide vital infrastructure as companies and the government agencies accelerate digitisation.
Khazna operates two data centres in Abu Dhabi and one in Dubai with a combined capacity of 40 megawatts, with plans to have a total of 200 megawatts of IT load capacity by 2023.
Multiple new data centres will be built in locations across the UAE and additional capacity will be increased at its current sites.
Hassan Al Naqbi, CEO of Khazna, said: “This significant expansion will support the economic ambitions of the UAE in the coming years.
“The UAE government and private sectors are pressing ahead with digital transformation, which has gathered pace in the last year through necessity. The experience of remote working and the growth of online services during the global pandemic has underlined the importance of robust, state-of-the-art digital infrastructure."
He added: "Demand for flexible, scalable and secure data storage is increasing rapidly, and this trend will continue as smart city and smart government projects gather momentum, cloud computing adoption grows and 5G networks are rolled out.”
Khazna, which was established in 2012, has grown rapidly into one of the leading data centre providers in the Middle East and North Africa region.
Khazna said with the focus on enabling hyperscalers, its new data centres will ensure that market demands are fully met while maintaining customer satisfaction excellence and trust.
source: arabianbusiness
Khazna, the UAE's largest supplier of commercial wholesale data centre services, to increase capacity five-fold by 2025
UAE – Datec Forum explores post-Covid-19 opportunities in the e-commerce sector
05 Dec 2020 Written by Admin AdminThe Dubai Silicon Oasis Authority announced yesterday the agenda for the Dubai Technology Entrepreneurship Center (DTEC) forum, which is organized in cooperation with the Arab Entrepreneur Magazine.
The last session of this year’s Dtech forum is scheduled to take place on December 8 at 3 pm UAE time, in digital format, through the application of the virtual Holover platform, developed by OutReal XR, under the title ‘The reality of retail business in 2020: from Traditional to online selling.
Edward Sabbagh, General Manager of Farfetch Middle East, will chair the first session entitled ‘Digitization of the luxury experience’, where he will provide an overview of the impact of the Corona pandemic on the luxury and fashion sector, and the change of online buying habits in the Middle East and the world.
It will also address what small and medium-sized companies have learned from international brands operating in this sector.
In a panel discussion titled ‘From Traditional Selling to Online Selling – Leveraging the E-Commerce Boom, Tamara Bubik of Arab Entrepreneur Magazine hosts Khalil Al-Alami, CEO of Teller, Ryan Osseiran, founder of Shoreags, and Renault de Gonverville, CEO of Zuo.
To analyze the opportunities that the rapid growth of e-commerce has brought to the companies supporting the sector from distribution partners, payment gateways, and logistics service providers, due to ‘Corona’.
source: alkhaleejtoday
Digital14 smart cities report shows UAE vulnerable to multiple attacks
05 Jun 2020 Written by Admin AdminSmart cities are expected to boost lucrative business opportunities for the UAE and the region. However, the Internet of Things (IoT), the technology underpinning these complex and interconnected urban networks, offers a considerably expanded attack surface for cyber adversaries of all kinds, according to a report by Digital14, a UAE-based advisor in digital transformation and cyber resilience.
There are an estimated 22 billion networked devices worldwide. The interconnected nature of smart cities means that by 2025, that number is forecast to rise to 38.6 billion.
Each of these devices serves as an entry point for malicious actors, with everyday gadgets such as IP cameras and digital video recorders (DVRs) likely to be at the greatest risk.
In fact, more than 25 percent of attacks against enterprises this year will involve IoT devices. The GCC is increasingly prone to IoT attacks, with 18.45 percent of public-facing hosts in the UAE alone potentially vulnerable to such attacks, according to the report.
Key highlights of the report showed that the UAE is hit by an average of 304 attacks per day, the highest in the GCC. Over 42,500 IP cameras are potentially vulnerable to cyberattacks in the GCC while nearly 8,000 digital video recorders (DVRs) in the region are openly exposed to an outside network.
With the UAE embracing smart city technologies and taking a leadership role in this field, it is no surprise that the country takes the regional top spot in the Global Connectivity Index.
Expecting the growth of this sector to continue, the report proposes six actionable takeaways for organisations to defend themselves against new and evolving threats, including validating IoT devices before deployment, continuously monitoring all devices on the IoT network, and isolating IoT devices away from crucial and sensitive networks.
With the vast opportunities that smart cities bring, both in terms of improved business productivity and consumer experience, operators and device owners must be conscious of the potential vulnerabilities within their networks.
Only by safeguarding their networks, can smart cities truly realise their promised potential.
source: sme10x
Over past few days, Dubai began to reopen tourism facilities such as holiday homes, beaches, hotels etc.
Dubai stays among the top five destinations for most of the people who are looking at their next holiday as restrictions on air travel ease and airlines resume regular flights, said a senior official.
"World tourism has witnessed an unprecedented negative trend, not seen since World War II.
These types of shocks are something that have not been planned by tourism sector globally.
We need to work hard to bring back confidence to the sector. However, there are positive indicators. We have seen a lot of online travel agency and other travel sites showing that demand for Dubai is very high and we are among the top five cities that people are looking at as their next holiday destination," said Helal Saeed Almarri, director-general of Dubai Tourism.
"We are definitely ready and prepared for the next stage and are ready to welcome guests."
He praised the crisis committee for having the highest level of Covid-19 test as well as the best level of healthcare and attention given to travel ecosystem to make sure that right system is in place so that people can enjoy.
Almarri said no date has been announced yet for the opening up the emirate for tourists but the complete reopening of the tourism sector will happen after Covid-19.
Over past few days, Dubai began to reopen tourism facilities such as holiday homes, beaches, hotels etc.
"While areas which are still pending such as spas, pools and kids play areas still need time before they open up," he said, adding that "Dubai has the highest global standards of safety and security across all stages of travel reopening.
There is going to be reopening of markets not just based on when we are ready but also when everybody else is also ready to open their markets," he added.
While highlighting the trends in aviation industry, he noted that group travel is likely to decline and there will be more individual travellers, especially in places like China and Russia.
source: khaleejtimes
75% of UK businesses eyeing Dubai for overseas expansion in a post-Brexit
02 Apr 2017 Written by Admin SAEMiddle East Business Magazine
75% of UK businesses eyeing Dubai for overseas expansion in a post-Brexit and Trump administration era.
Emerging markets are becoming increasingly attractive to 63% of UK businesses, with 75% eyeing Dubai as an overseas business location to expand into
- New research by DMCC (Dubai Multi Commodities Centre) reveals that just under half (42%) of UK businesses have more appetite for overseas expansion in the post-Brexit and Trump administration era
- Amongst the top reasons for eyeing overseas expansion, include: emerging markets becoming increasingly attractive (63%), business need for a global presence (47%), availability and wealth of overseas talent (44%), too much uncertainty in the markets and the UK no longer being an attractive option (36%)
- Out of the UK businesses open to expanding into overseas markets, 40% would consider the Middle East and 75% would consider Dubai as a location to expand into
As the nation awaits the triggering of ‘Article 50’, the uncertainty over Brexit is making UK businesses more open to overseas expansion, with 42 per cent of UK businesses confessing to having more appetite now than previously to expand their business presence overseas. That’s according to new research released recently by the DMCC, a Dubai Government entity on trade and enterprise.
Amongst the top reasons for UK businesses eyeing overseas expansion, include: emerging markets becoming increasingly attractive (63%), the growing business need for a global presence (47%), availability and wealth of overseas talent (44%), and too much uncertainty in the markets with the UK no longer being an attractive option (36%).
Out of the UK businesses open to expanding into overseas markets, a staggering 75% say they are eyeing Dubai as a possible overseas location to expand into. And out of the UK businesses that are still undecided, 40% say they would consider the Middle East as a territory to have a presence in if they are open to overseas business expansion.
And amongst the UK businesses that are still hesitant about overseas expansion, 34% say it is because their business is not applicable for an overseas market, however certain features could make it more attractive for them to consider overseas business expansion. For 43% of UK businesses, tax free incentives would make it more attractive to expand into overseas markets, and for 29%, the ease at which they can arrange paperwork (trade license, visas, office space) would help them consider an overseas expansion.
http://middleeast-business.com
Having a clear vision of the future is the main driver behind the impressive development of Dubai.
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Economy of United Arab Emirates The United Arab Emirates (UAE) is a federation of seven different emirates which together comprise the third largest economy in the Middle East behind Saudi Arabia and Iran. Its per capita GDP is second after Qatar. The UAE is an important producer of natural gas and oil, ranking seventh globally in total proven reserves of both. Abu Dhabi possesses the majority of oil and natural gas reserves followed by Dubai, with small amounts in Sharjah and Ras al-Khaimah. The country is also a member of the Organization of Petroleum Exporting Countries (OPEC). Despite having the most diversified economy in the Middle East, the UAE remains largely dependent upon the hydrocarbons sector for economic growth. The UAE's strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment. UAE is a major contributor to the growth of the Middle East region. Over the past 42 years, the UAE’s GDP growth rate ballooned 200 times to $360 billion in 2012. While Dubai’s activities may generate more headlines in the media, Abu Dhabi is the economic powerhouse among the emirates, owing to the fact that it possesses the lion’s share of hydrocarbon reserves. Accounting for 90 per cent of UAE oil and gas production, Abu Dhabi has more than 90,000 million barrels of recoverable crude and the world’s fifth largest deposits of natural gas. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. UAE’s strong macroeconomic performance has been supported by solid macroeconomic policies (see Figure-4 for selected indicators). Economic growth in the UAE accelerated to 4.4 per cent in inflation-adjusted terms in 2012 from a downwardly revised 3.9% the previous year as activity picked up across all sectors, according to National Bureau of Statistics. The Economist Intelligence Unit predicts that in the coming 5- year period of 2012-2016 the average fiscal surplus will be 3.9% of GDP, current account surplus - 5.3% of GDP, trade surplus - 15.3% of GDP, and real GDP growth - 5.1% per annum. One of the most important factors is the role played by good and stable oil prices in general over the last year. Oil prices averaged $112 per barrel last year, up from $109 in 2011. The non-oil sector share on the Gulf country's real GDP was estimated at 67.3% in 2012. On the strength of its hydrocarbon sector the UAE is one of the world's wealthiest nations, with a gross domestic product (GDP) per capita (at current prices) estimated at $66,113 in 2012. Beyond the hydrocarbon economy—which continues to account for approximately 80 percent of total government revenues—the UAE is becoming one of the world's most important financial centers and a major trading center in the Middle East. Investments in infrastructure and technology, and the development of projects such as the Khalifa Industrial Zone Abu Dhabi (KIZAD) and other economic "free zones," continue to provide the UAE with insurance against oil price declines and global economic stagnation. Since the bottom of the economic recession in 2009, the UAE solidified its economic portfolio, but it continues to rely on its vast hydrocarbon resources for the majority of its economic activity. The economy was expected to continue to grow further to reach $395 billion in 2013 (3.6% growth) and as much as $410 billion in 2014. An IMF report shows that the UAE economy accounted for more than a quarter of the GCC’s GDP of $1.482 trillion in 2012. The contribution of the construction industry is particularly significant to the UAE economy, especially when massive investments received in this sector from both public and private enterprises are considered. The political stability experienced by this country, its ability to attract international business and investment, its growing non-oil sector, tax-free environment and attractive salaries have lured builders, architects and consultants to UAE. High public spending and a steady increase in private sector investment have enabled this country to maintain its position as the second-largest Gulf Arab economy after Saudi Arabia, and among the fastest-growing economies in the world.
Essential Information Area: 83,600 sq km
A visit requires a letter, or telex, of sponsorship to a UAE embassy before a visa can be issued. Bona fide business visitors, Arab and foreign entrepreneurs and experts can now obtain a seven-day transit visa at the airport on entry; this could be revoked.
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